Investing Vocabulary Quiz

An employer contribution made to their employees' 401(k) plan based on individual employee's contributions

• 401(K) Match

• Individual Retirement Account (IRA)

A collection of stocks and/or bonds combined into one fund which will be traded as a unit, typically chosen and actively managed by an "expert" in exchange for a fee from each investor

• Municipal Bond

• Municipal Fund

A bond, often having tax advantages for individual investors, issued by a state or local government which typically uses the loan to pay for public works to benefit its citizens

• Municipal Bond

• Municipal Fund

An investing tool for individuals to earmark funds specifically for their retirement

• 401(K) Match

• Individual Retirement Account (IRA)

The annual interest payment on a bond, usually expressed as a percentage of its face value

• Coupon

• Dividend

A group of financial instruments which have similar financial characteristics and behave similarly in the marketplace (like stocks, bonds, and cash)

• Asset Class

• Asset Allocation

Dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash

• Asset Class

• Asset Allocation

Money from the profits of a company that is paid out to its shareholders, typically on a quarterly basis

• Coupon

• Dividend

A retirement savings plan, sponsored through your employer who will often match your contributions, that allows an individual to save for retirement and have the savings grow while deferring taxes until funds are withdrawn

• Traditional 401(k) Plan

• Traditional IRA

An individual retirement account that allows a person to set aside pre-tax income up to a specified amount each year

• Traditional 401(k) Plan

• Traditional IRA